Tax allowances
- Enterprise income tax shall be reduced for by 75 per cent of amounts donated to public benefit organisations (Section 20 of the Law On Enterprise Income Tax).
- Total tax allowance may not exceed 20% of the total tax amount.
- A donation is physical property or financial means, which the payer, on the basis of a contract, transfers free of charge to the Children's Hospital Foundation to achieve the purposes specified in the articles of association.
A tax allowance shall not be applied if:
- the taxpayer on the first day of the second month in the taxation period is in tax arrears in excess of EUR 150
- the purpose of the donation contains a direct or indirect indication to the specified recipient of the donation, which is an undertaking or a related party associated with the donor, or an employee of the donor or a family member of such employee
To receive the tax allowance one should:
- fill in the corporate tax return for the year and specify the donated amount
- file the return with the SRA following general procedures
The documents that should be submitted to the SRS:
- A copy of the decision by the Ministry of Finance granting the status of a public benefit organisation to the Children's Hospital Foundation
- Documents supporting the amount donated to the Children's Hospital Foundation (a cash receipt or a bank transfer order - legal entities should store them for five years)
